Eisner v. Macomber
Case Date: 05/19/2024
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Eisner v. Macomber, 252 U.S. 189 (1920),[1] was a tax case before the United States Supreme Court. It is notable for the following holdings:
a pro rata stock dividend, where a shareholder received no actual cash or other property, and retained the same proportionate share of ownership of the corporation as was held prior to the dividend, was not taxable income to the shareholder within the meaning of the Sixteenth Amendment
An income tax imposed by the Revenue Act of 1916 on such dividend was unconstitutional, even where the dividend indirectly represented accrued earnings of the corporation.
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